Hot stocks | Three stocks which can give up to 10% return in 3-4 weeks
Episode 2035, Dec 19, 2019, 01:55 AM
Nifty Metal index, on the daily chart, has witnessed a strong breakout of a consolidation zone and looks poised for outperforming the benchmark index in the coming sessions.
On December 18, Nifty opened on a positive note due to strong global cues which helped the benchmark index to close at a fresh record high, above the crucial level of 12,200.
Nifty closed above the bearish engulfing candlestick pattern which was formed in the first week of December. A failure of a bearish pattern signifies a continuous bullish trend.
Nifty Metal index, on the daily chart, has witnessed a strong breakout of a consolidation zone and looks poised for outperforming the benchmark index in the coming sessions.
Nifty IT has given a fresh break out of its downward falling trendline on a daily interval which indicates a strong surge in prices.
Nifty IT has given a fresh break out of its downward falling trendline on a daily interval which indicates a strong surge in prices.
As the market is trading at an all-time high level, the base support for Nifty is inching higher, which is placed at 12,000. This level is supported by a continuation gap on the daily timeframe. A breach of 12,000 on a closing basis will drift Nifty lower towards 11,800 level.
The current bullish momentum could take the index towards 12,360-12,400 which is concluded by the Fibonacci ratios.
Here are three buy calls for the next three-four weeks:
Here are three buy calls for the next three-four weeks:
After consolidating in a broad range of Rs 440 - 470, the stock has witnessed a breakout above its “Symmetrical Triangle Pattern” on the daily timeline.
On the weekly timeframe, the stock has formed a “Bullish Bat Harmonic Pattern” and is currently trading above its potential reversal zone (PRZ) level.
Moreover, prices are trading above its 21, 50 & 100-day exponential moving averages, which is positive for the counter in the medium-term.
Moreover, prices are trading above its 21, 50 & 100-day exponential moving averages, which is positive for the counter in the medium-term.
On the weekly chart, the MACD indicator has just gone above zero levels with positive crossover. Since September 2018, Momentum oscillator RSI (14) on the daily chart is reading in a range of 45 – 65 which is a positive range shift and horizontal trendline breakout on a weekly time frame adds positive outlook in the near-term.
After consolidating in a broad range for almost 18 months within a range of Rs 750 - 1,025, the stock has witnessed a breakout above its “Rectangle Pattern” on the weekly timeline.
On a monthly time frame, relative strength (RS) has shown outperformance compared with the benchmark index Nifty.
Moreover, the stock is trading above its 50, 100 & 200-week exponential moving averages, which is positive for the counter in medium to long-term.
On the weekly chart, the MACD indicator is showing positive vibes and reading above its line of polarity with positive crossover.
Momentum oscillator RSI (14) on the weekly chart is reading in a higher low formation which is above 65 levels with positive crossover on the cards.
The stock is trading in higher high higher low formation on a broader time frame. Currently, the stock has found support near its upward rising trendline and is showing optimism.
Positive crossover in momentum oscillator RSI (14) indicates positive momentum to continue for the time being. Moreover, the stock is trading above its 50, 100 & 200-week exponential moving averages, which is positive for the counter in medium to long-term.
(The author is Technical Analyst at Bonanza Portfolio)
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